Alcatel-Lucent to Boost its Small Cell Network - Analyst Blog

Alcatel-Lucent ALU and Towerstream Corporation TWER recently collaborated to develop small cell wireless infrastructure. Financial terms of the deal remain undisclosed.

The scope of the contract allows Alcatel-Lucent to include Towerstream in its Metro Cell Express Site Certification program, which can significantly benefit the carriers by allowing them to deploy speedy and efficient wireless networks that will be in accordance with the subscribers' specifications. This deal strengthens the company's capabilities for site acquisition, power accessibility, and backhaul connectivity in the industry.

Towerstream Corporation is a leader in providing 4G and Small Cell Rooftop Tower solutions across the globe. Its strength in Fixed Wireless and Small Cell assets (a part of its HetNets Tower Corporation subsidiary) will complement Alcatel-Lucent's initiatives to broaden its presence in the small cell deployment industry.

This agreement is likely to benefit both the companies significantly in the long run as the rollout of small cells is on the rise owing to the inconvenience of installing large towers in inaccessible areas. Research firm, Infonetics forecasted that the small cell market is likely grow as much as 65% in this year itself, to touch the $1.3 billion mark. Significant growth of 4G LTE (Long term Evolution) and growing deployment of small cells are the primary reasons for this encouraging outlook.

Alcatel-Lucent is focused on its ‘Shift Plan' strategy, as per which the company has been making sincere efforts to reposition and establish itself as a specialist of Internet Protocol IP and Cloud networking, ultra broadband fixed and mobile access. So far, the company has been successful in its initiatives and has largely benefited from the exceptional growth in IP and LTE technologies. Notably, in this regard, Alcatel-Lucent's small cell products have been chosen by telecom giants such as Verizon Communications Inc. VZ to enhance their LTE network.

Alcatel currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the industry that can be considered at the present is ShoreTel Inc. SHOR, which carries a Zacks Rank #1 (Strong Buy).